Determine the following balances that would appear in the consolidated financial statements of P COMPANY and S COMPANY:1. Total Assets2. Total Liabilities3. Equity P COMPANY acquired 2,000 voting shares of S COMPANY at P100 per share. Balancesheet of both companies on January 1, 2020, immediately after the acquisition follow:S COMPANYS COMPANYP COMPANYВООK VALUE ВОOK VALUE130,000195,000250,000200,000775,000FAIR VALUECash60,00075,000300,00060,00070,000325,000InventoriesРреInvestment in S CompanyTotal435,000LiabilitiesCommon stock, P20 parExcess over parRetained Earnings75,000250,000250,000200,000775,000200,00050,000100,00085,000435,000220,000TotalThe non-controlling interest is to be valued at its' proportionate share in the fair value ofS COMPANY's net assets.Determine the following balances that would appear in the consolidated financial statements ofP COMPANY and S COMPANY:1. Total Assets2. Total Liabilities3. Equity

Working note: Computation of fair value of the identifiable net assets of S company: Computation…

P COMPANY acquired 2,000 voting shares of S COMPANY at P100 per share. Balance sheet of both companies on January 1, 2020, immediately after the acquisition follow: S COMPANY FAIR VALUE 60,000 70,000 325,000 P COMPANY S COMPANY BOOK VALUE BOOK VALUE Cash Inventories Рре Investment in S Company 130,000 195,000 250,000 200,000 775,000 60,000 75,000 300,000 Total 435,000 Liabilities Common stock, P20 par Excess over par Retained Earnings 75,000 250,000 250,000 200,000 775,000 220,000 200,000 50,000 100,000 85,000 435,000 Total The non-controlling interest is to be valued at its' proportionate share in the fair value of S COMPANY's net assets. Determine the following balances that would appear in the consolidated financial statements of P COMPANY and S COMPANY: 1. Total Assets Total Liabilities 3. Equity 2.

P COMPANY acquired 2,000 voting shares of S COMPANY at P100 per share. Balance sheet of both companies on January 1, 2020, immediately after the acquisition follow: S COMPANY FAIR VALUE 60,000 70,000 325,000 P COMPANY S COMPANY BOOK VALUE BOOK VALUE Cash Inventories Рре Investment in S Company 130,000 195,000 250,000 200,000 775,000 60,000 75,000 300,000 Total 435,000 Liabilities Common stock, P20 par Excess over par Retained Earnings 75,000 250,000 250,000 200,000 775,000 220,000 200,000 50,000 100,000 85,000 435,000 Total The non-controlling interest is to be valued at its' proportionate share in the fair value of S COMPANY's net assets. Determine the following balances that would appear in the consolidated financial statements of P COMPANY and S COMPANY: 1. Total Assets Total Liabilities 3. Equity 2.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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